Every commercial property, whether it be an industrial warehouse, or an apartment building requires a specialized broker within the area and within that particular asset class. Furthermore, for certain types of asset classes there are various types of transactions including selling, purchasing, or leasing (for tenant or landlord).
Many brokers specialize in one of these fields and do not venture outside that area of expertise. This specialization allows them to be very knowledgeable in that sub-market, to know all the players working in the market such as other brokers, landlords, contractors, developers, and any other professionals working within the space.
The broker should know what the market rates and $ per square foot prices are from street to street in their area. Although, market specialization is important, it is not always paramount as certain asset groups will have brokers that can help you properly with many different types of transactions. Researching commercial brokers can be a daunting task as many don’t market themselves in the normal avenues as residential agents do.
Additionally, discovering their past sales and track records in relation to your commercial property can also be a lot of extra homework you didn’t count on. Moreover, most commercial brokers will not give you access to past clients for privacy reasons and you will simply have to go off of their word in many cases.
Unfortunately, good commercial brokers do not have reviews on Amazon or Yelp reviews that can be reviewed with a touch of a button. Working with a great number of commercial brokers with success and without has led to the conclusion of the collection of these following traits which should not be compromised on.
Is the Commercial Broker Responsive?
Starting a search for a particular property, buyers will have competition for all the good properties. Fielding buyers for a new listing a broker should have a carefully laid out system to deal with any showings and offers, quickly and efficiently. Good brokers should be busy with their current business but should always make time for their serious clients or have a support system in place to get their clients the answers that they need.
Being attentive and pushy in the commercial real estate world is helpful as many brokers do not possess this trait and let business fall by the wayside due to bureaucracy and not being nimble enough to handle transactions that take more finesse and creative structuring.
Does the Commercial Broker Have Experience?
Experience, although an obvious attribute for a commercial broker, is not always the most important as brokers typically work on teams or in groups to better handle transactions and what one broker lacks another one can make up for. A broker should have a team supporting him in all the various needs that brokers have including: legal, marketing, tax, and many others depending on the type of property.
Your main contact broker should have a good combination of experience within the market you are looking for which mainly includes past sales/leases in the area of your search or current property. But, can also include background knowledge in different fields such as legal or experience with tenants you are looking for to occupy the subject retail/industrial building.
Does the Commercial Broker Have a Strong Team Around Them?
Most commercial brokers work with a limited number of large brokerages within the industry that provide quite a bit of support for each of their agents to help streamline the process. These brokerages provide various services like in house legal support which allows all their brokers to have their incoming and outgoing contracts reviewed by professional attorneys specialized in whichever particular field of law needed. In house marketing team professionals to help put together an aesthetically pleasing offering memorandum on a property with relevant data and photography. And finally, a national network of commercial brokers to pass deals back and forth to as well as collect local and national data for the betterment of the brokerage.
These large brokerages usually have large teams but not always a well structured one that can help you achieve your goals. Independent commercial brokers in smaller commercial companies are sometimes a good option as well as they can be more localized than the national chains and more in tune with the market as well as being more responsive to your needs.
When choosing your next commercial broker be weary of an agent or broker pushing you towards a particular agent they know. It is more likely than not the real estate agent you do know and trust will know a commercial broker, but that commercial broker will not be specialized in your particular need.
Employing the services of a site like CommercialConsult.com will ensure that you receive the contacts of at least a few qualified commercial brokers that specialize not only in your particular asset class, but also the geographic region, and you will know they have been properly vetted to have other strong qualities to ensure that you receive the best quality of service and highest chance for your deal to close successfully.